Proposed Rule2026-18484
Reef Fish Fishery of the Gulf of America; 2027 Red Grouper Commercial Quota Retention
Primary source
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Published
September 10, 2026
Issuing agencies
Commerce DepartmentNational Oceanic and Atmospheric Administration
Abstract
NMFS proposes to implement management measures described in a framework action under the Fishery Management Plan for the Reef Fish Resources of the Gulf (FMP), as prepared by the Gulf Council (Council). If implemented, this proposed rule would withhold a portion of the commercial allocation of Gulf of America (Gulf) red grouper for the 2027 fishing year in anticipation of the upcoming rulemaking to implement Amendment 63 to the FMP (Amendment 63). If implemented by NMFS, Amendment 63 would establish a pilot program for setting aside a portion of the red grouper commercial quota for a quota pool. This proposed rule would withhold a portion of the red grouper commercial quota for the 2027 fishing year in the amount necessary to establish that quota pool. This withheld quota would otherwise be allocated to shareholders in the Individual Fishing Quota program for Gulf grouper and tilefishes (GT-IFQ) program on January 1, 2027.
Full Text
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<title>Federal Register, Volume 91 Issue 174 (Thursday, September 10, 2026)</title>
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[Federal Register Volume 91, Number 174 (Thursday, September 10, 2026)]
[Proposed Rules]
[Pages 57532-57535]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-18484]
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DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric Administration
50 CFR Part 622
[Docket No. 260902-0009]
RIN 0648-BO57
Reef Fish Fishery of the Gulf of America; 2027 Red Grouper
Commercial Quota Retention
AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA), Commerce.
ACTION: Proposed rule; request for comments.
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SUMMARY: NMFS proposes to implement management measures described in a
framework action under the Fishery Management Plan for the Reef Fish
Resources of the Gulf (FMP), as prepared by the Gulf Council (Council).
If implemented, this proposed rule would withhold a portion of the
commercial allocation of Gulf of America (Gulf) red grouper for the
2027 fishing year in anticipation of the upcoming rulemaking to
implement Amendment 63 to the FMP (Amendment 63). If implemented by
NMFS, Amendment 63 would establish a pilot program for setting aside a
portion of the red grouper commercial quota for a quota pool. This
proposed rule would withhold a portion of the red grouper commercial
quota for the 2027 fishing year in the amount necessary to establish
that quota pool. This withheld quota would otherwise be allocated to
shareholders in the Individual Fishing Quota program for Gulf grouper
and tilefishes (GT-IFQ) program on January 1, 2027.
DATES: Written comments must be received on or before October 13, 2026.
ADDRESSES: A plain language summary of this proposed rule is available
at <a href="https://www.regulations.gov/docketNOAA-NMFS-2026-1882">https://www.regulations.gov/docketNOAA-NMFS-2026-1882</a>. You may
submit comments on this document, identified by NOAA-NMFS-2026-1882, by
either of the following methods:
<bullet> Electronic Submission: Submit all electronic public
comments via the Federal e-Rulemaking Portal. Visit <a href="https://www.regulations.gov">https://www.regulations.gov</a> and type NOAA-NMFS-2026-1882, in the Search box.
Click the ``Comment'' icon, complete the required fields, and enter or
attach your comments.
<bullet> Mail: Submit written comments to Frank Helies, Southeast
Regional Office, NMFS, 263 13th Avenue South, St. Petersburg, FL 33701.
Instructions: Comments sent by any other method, to any other
address or individual, or received after the end of the comment period,
may not be considered by NMFS. All comments received are a part of the
public record and will generally be posted for public viewing on
<a href="https://www.regulations.gov">https://www.regulations.gov</a> without change. All personal identifying
information (e.g., name, address), confidential business information,
or otherwise sensitive information submitted voluntarily by the sender
will be publicly accessible. NMFS will accept anonymous comments (enter
``N/A'' in the required fields if you wish to remain anonymous).
[[Page 57533]]
Electronic copies of the framework action, which includes a
Regulatory Flexibility Act (RFA) analysis and a regulatory impact
review, may be obtained from the Southeast Regional Office website at
<a href="https://www.fisheries.noaa.gov/action/red-grouper-quota-holdback-anticipation-amendment-63-implementation/">https://www.fisheries.noaa.gov/action/red-grouper-quota-holdback-anticipation-amendment-63-implementation/</a>.
FOR FURTHER INFORMATION CONTACT: Frank Helies, telephone: 727-824-5305,
or email: <a href="/cdn-cgi/l/email-protection#395f4b58575217515c55505c4a7957565858175e564f"><span class="__cf_email__" data-cfemail="234551424d480d4b464f4a4650634d4c42420d444c55">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The Gulf reef fish fishery, which includes
red grouper, is managed under the FMP. The FMP was prepared by the
Council and NMFS, approved by the U.S. Secretary of Commerce, and is
implemented by NMFS through regulations at 50 CFR part 622 under the
authority of the Magnuson-Stevens Fishery Conservation and Management
Act (Magnuson-Stevens Act).
Unless otherwise noted, all weights in this proposed rule are in
pounds (lb) gutted weight.
Background
The Magnuson-Stevens Act requires NMFS and the regional fishery
management councils to prevent overfishing and achieve, on a continuing
basis, the optimum yield from federally managed fish stocks. These
mandates are intended to ensure fishery resources are managed for the
greatest overall benefit to the nation, particularly with respect to
food production and providing recreational opportunities, and to
protect marine ecosystems.
This action is taken under the statutory authority of Magnuson-
Stevens Act section 303(b)(14) to prescribe measures determined to be
necessary and appropriate for the conservation and management of the
fishery.
The most recent stock assessment for Gulf red grouper (Southeast
Data, Assessment, and Review (SEDAR) 88) was completed in 2025. The
stock assessment results indicated an increase in the red grouper stock
size relative to the previous assessment (SEDAR 61, 2019). Based on its
review of that assessment, the Council's Standing Scientific and
Statistical Committee determined that the stock was not overfished or
undergoing overfishing and recommended increases to the overfishing
limit and acceptable biological catch relative to the current harvest
limits. In January 2026, the Council approved for NMFS review and
implementation substantial increases to the red grouper catch limits in
Amendment 62 to the FMP (Amendment 62). The notice of availability for
Amendment 62 published in the Federal Register on April 2, 2026 (91 FR
16623) and the proposed rule for Amendment 62 published in the Federal
Register on July 7, 2026 (91 FR 41611). An electronic copy of Amendment
62 is available from the Southeast Regional Office website at: <a href="https://www.fisheries.noaa.gov/action/amendment-62-gulf-red-grouper-management-measures">https://www.fisheries.noaa.gov/action/amendment-62-gulf-red-grouper-management-measures</a>. If implemented, NMFS intends that Amendment 62 will be
effective later in 2026. Among other measures, for the 2027 fishing
year, Amendment 62 would set the commercial quota at 4.83 million lb
(2.19 million kilograms (kg)).
In anticipation of the substantial red grouper commercial quota
increase authorized in Amendment 62 and the desire to improve
opportunity for participants to enter the GT-IFQ program and reduce
bycatch, Amendment 63 would establish a pilot program for setting aside
a portion of the increase in red grouper commercial quota for a quota
pool. Amendment 63 considers the amount of quota in the quota pool, the
eligibility criteria for participation in the quota pool, and the
percentages of quota to be distributed to shareholders and non-
shareholders, along with the method through which distribution would
occur. Amendment 63 is intended to establish a 3-year pilot program for
the 2027, 2028, and 2029 fishing years, using the substantial increase
in red grouper quota as an opportunity to test a new mechanism to
distribute allocation with the intention to improve opportunities for
participation in the GT-IFQ program and reduce bycatch and discards of
IFQ species. The quota pool would not change the total commercial quota
established in Amendment 62 but would distribute a portion of the quota
based on the criteria selected in Amendment 63.
The Council approved Amendment 63 at its June 2026 meeting for
submission and subsequent implementation by NMFS. Among other measures,
Amendment 63 defines the red grouper commercial quota thresholds that
must be met for there to be a red grouper quota pool. In Amendment 63,
for there to be a quota pool, the commercial quota must be greater than
4.28 million lb (1.94 million kg) and, if so, then the quota pool
allocation is equal to 50 percent of the commercial quota that is
greater than 4.28 million lb (1.94 million kg). For fishing year 2027,
since Amendment 62 would set the commercial quota at 4.83 million lb
(2.19 million kg), the available commercial quota for the quota pool
that would be established in Amendment 63 would be 50 percent of the
difference between 4.83 million lb (2.19 million kg) and 4.28 million
lb (1.94 million kg). This difference is 550,000 lb (249,476 kg), 50
percent of which is 275,000 lb (124,738 kg). Therefore, for fishing
year 2027, 275,000 lb (124,738 kg) would be the available commercial
quota for the quota pool. An electronic copy of Amendment 63 is
available from the Southeast Regional Office website at: <a href="https://www.fisheries.noaa.gov/action/gulf-amendment-63-red-grouper-commercial-quota-pool-under-grouper-tilefish-individual">https://www.fisheries.noaa.gov/action/gulf-amendment-63-red-grouper-commercial-quota-pool-under-grouper-tilefish-individual</a>.
If approved, this framework action would take effect after
Amendment 62 becomes effective but would still take effect before the
end of 2026. The anticipated timeline for approval and implementation
of Amendment 63 would not allow NMFS to implement the proposed quota
pool until after the annual distribution of allocation to the red
grouper IFQ shareholders on January 1, 2027. In the GT-IFQ program,
NMFS is not able to reduce commercial quota (allocation) once it has
already been distributed for a fishing year. This proposed rule would
provide the Southeast Regional Administrator the authority to withhold
a portion of the red grouper 2027 commercial quota in anticipation of
the implementation of Amendment 63 in 2027.
Management Measure Contained in This Proposed Rule
If implemented, this proposed rule would withhold 275,000 lb
(124,738 kg) of the 2027 IFQ distribution of the red grouper commercial
quota on January 1, 2027. If a final rule to implement Amendment 63 is
not effective by May 1, 2027, NMFS would distribute withheld 2027 IFQ
allocation of red grouper to the current shareholders based on their
current shares held as of the date of distribution.
Classification
Pursuant to section 304(b)(1)(A) of the Magnuson-Stevens Act, the
NMFS Assistant Administrator has determined that this proposed rule is
consistent with the framework action, the FMP, other provisions of the
Magnuson-Stevens Act, and other applicable law, subject to further
consideration after public comment.
This proposed rule has been determined to be not significant for
purposes of Executive Order 12866.
The Magnuson-Stevens Act provides the legal basis for this proposed
rule. No duplicative, overlapping, or conflicting Federal rules have
been identified. In
[[Page 57534]]
addition, no new reporting, record-keeping, or other compliance
requirements are introduced by this proposed rule. This proposed rule
contains no information collection requirements under the Paperwork
Reduction Act of 1995.
The Senior Lead Counsel for Regulation of the Department of
Commerce certified to the Chief Counsel for Advocacy of the Small
Business Administration that this proposed rule, if adopted, would not
have a significant economic impact on a substantial number of small
entities. The factual basis for this certification follows. All
monetary estimates in the following analysis are in 2024 dollars.
A description of this proposed rule, why it is being considered,
and the objectives of this proposed rule are contained in the SUMMARY
and SUPPLEMENTARY INFORMATION sections of this proposed rule.
This proposed rule would provide the Southeast Regional
Administrator the authority to withhold a portion of the red grouper
2027 commercial quota in anticipation of the implementation of
Amendment 63 to the FMP.
The proposed changes to the distribution of the red grouper
commercial quota would apply to red grouper IFQ shareholders, as well
as commercial fishing businesses that fish for red grouper in Federal
waters of the Gulf. None of the proposed changes would directly apply
to federally permitted dealers. Any change in the supply of Gulf red
grouper available for purchase by dealers as a result of this proposed
rule, and associated economic effects, would be an indirect effect of
the proposed rule and would therefore fall outside the scope of the
RFA.
The RFA requires NMFS to describe the impact of the proposed rule
on small entities (5 U.S.C. 603). Small entities include small
businesses, small organizations, and small governmental jurisdictions
(5 U.S.C. 601(3)-(6)).
As of July 8, 2021, there were 825 limited access valid or
renewable Federal commercial Gulf reef fish permits. In order to
commercially harvest Gulf red grouper, a vessel permit must also be
linked to an IFQ account and possess sufficient allocation for this
species. IFQ accounts can be opened, and valid permits can be linked to
IFQ accounts, at any time during the year. Eligible vessels can receive
red grouper allocation from other IFQ participants. On average from
2020 through 2024, there were 671 IFQ accounts that held red grouper
allocation and 68 percent of those held red grouper shares. During the
same period, there were 324 federally permitted commercial reef fish
vessels with reported landings of red grouper in the Gulf on average
each year. Their average annual vessel-level gross revenue from all
species for 2020 through 2024 was approximately $137,779 and Gulf red
grouper landings accounted for approximately 34 percent of this
revenue. From 2020 through 2024, the maximum annual revenue from all
species reported by a single one of the commercial vessels that landed
Gulf red grouper was approximately $1.24 million in 2022. Economic
profits for these commercial vessels are estimated to be 28.1 percent
of their annual gross revenue ($38,716 per vessel) during this period.
Although many fishing businesses own only one permitted vessel, some
hold or own multiple permits and vessels. Since comprehensive ownership
data are currently unavailable for vessels harvesting Gulf red grouper,
this analysis assumes that each of the 324 vessels is independently
owned by a single business. This assumption is expected to result in an
overestimate of the actual number of businesses directly regulated by
this proposed rule. Additionally, 150 IFQ shareholder accounts, on
average from 2020 through 2024, possessed red grouper shares but did
not report any landings of red grouper. The account holders either
transferred red grouper allocation only or were inactive. It is assumed
that each of these accounts is independently owned by a single business
as well. Revenue and cost data are not collected directly from IFQ
shareholders; therefore, estimates of economic profits for the Gulf red
grouper IFQ commercial fishing businesses that did not report landings
are unavailable.
For RFA purposes only, NMFS has established a small business size
standard for businesses, including their affiliates, whose primary
industry is commercial fishing (see 50 CFR 200.2). A business primarily
engaged in commercial fishing (North American Industry Classification
System code 11411) is classified as a small business if it is
independently owned and operated, is not dominant in its field of
operation (including its affiliates), and has combined annual receipts
not in excess of $11 million for all its affiliated operations
worldwide. All the commercial fishing businesses directly regulated by
this proposed rule are believed to be small entities based on the NMFS
size standard.
The proposed rule would specifically authorize the Southeast
Regional Administrator to withhold 275,000 lb (124,738 kg) of the 2027
IFQ distribution of the red grouper commercial quota on January 1,
2027. If a final rule to implement Amendment 63 is not effective by May
1, 2027, NMFS would distribute this withheld 2027 IFQ allocation of red
grouper to the current shareholders based on their current shares held
as of the date of distribution. From 2020 through 2024, the average
annual red grouper quota utilization rate was approximately 89 percent,
indicating that 11 percent of the red grouper quota remains unharvested
at the end of each year, and a much larger percentage remains available
at the 4-month mark during the fishing year. Furthermore, if
implemented, Amendment 62 to the FMP will increase the commercial red
grouper quota by 2.04 million lb (0.93 million kg) in 2027 when
compared to the current quota of 2.79 million lb (1.27 million kg). In
2016, a 2.06 million lb (0.93 million kg) increase in the commercial
red grouper quota resulted in a 17 percent decline in the quota
utilization rate in 2017. As such, implementation of Amendment 62 is
expected to cause a comparable decline in the current quota utilization
rate. Thus, it is likely that withholding a portion of the quota for 4
months in 2027 would not result in adverse economic effects from
delayed red grouper harvest for the vast majority of participants. For
the limited number of shareholders who plan to harvest or sell their
allocation immediately upon receipt on January 1, 2027, the temporary
withholding of IFQ allocation would result in minor adverse economic
effects due to the expected short delay at the beginning of the 2027
fishing year until Amendment 63 is expected to be implemented. Although
neither the economic benefits of implementing the red grouper
commercial quota pool in 2027 rather than 2028, nor the economic costs
of delaying the distribution of a portion of the commercial red grouper
quota by 4 months can be quantified at this time, economic losses due
to delays in quota distribution are expected to be minor. Further, all
withheld quota pounds would either be distributed through the quota
pool upon the implementation of Amendment 63 or returned directly to
shareholders by May 1, 2027.
Based on the above analysis, this proposed rule, if implemented,
would not have a significant economic impact on a substantial number of
small entities. As a result, an initial regulatory flexibility analysis
is not required, and none has been prepared.
List of Subjects in 50 CFR Part 622
Commercial, Fisheries, Fishing, Gulf of America, Red grouper.
[[Page 57535]]
Dated: September 8, 2026.
Samuel D. Rauch III,
Deputy Assistant Administrator for Regulatory Programs, National Marine
Fisheries Service.
For the reasons set out in the preamble, NMFS proposes to amend 50
CFR part 622 as follows:
PART 622--FISHERIES OF THE CARIBBEAN, GULF OF AMERICA, AND SOUTH
ATLANTIC
0
1. The authority citation for part 622 continues to read as follows:
Authority: 16 U.S.C. 1801 et seq.
0
2. In Sec. 622.39, revise paragraph (a)(1)(iii)(C)(2) to read as
follows:
Sec. 622.39 Quotas.
* * * * *
(a) * * *
(1) * * *
(iii) * * *
(C) * * *
(2) For fishing year 2027--4.83 million lb (2.19 million kg).
(i) To allow for a red grouper commercial quota pool to be
implemented in 2027, NMFS will withhold distribution of 275,000 lb
(124,738 kg), gutted weight, of the 2027 IFQ allocation of the red
grouper commercial quota on January 1, 2027.
(ii) If a final rule to implement a red grouper commercial quota
pool is not effective by May 1, 2027, NMFS will distribute the withheld
275,000 lb (124,738 kg), gutted weight, of 2027 IFQ allocation of the
red grouper commercial quota to the current shareholders based on their
current shares held as of the date of distribution.
* * * * *
[FR Doc. 2026-18484 Filed 9-9-26; 8:45 am]
BILLING CODE 3510-22-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.